Fundamentals of Management chapter 1 CH-1.pptx

Meaning, Concepts, Objectives and Importance of management

1. Chapter- I NATURE AND SCOPE OF MANAGEMENT

2. Management is a process of allocating human and economic resources of the organization through managerial functions such as planning, organizing, staffing, directing, and controlling for the purpose of achieving stated objectives. The term ‘management’ has been used in different senses . It may refer to the functions it undertakes, a body of knowledge , a practice and a discipline , a factor of production , etc. Meaning of MANAGEMENT

3. Henry Fayol “To manage is to forecast and plan, to organize, to command, to co-ordinate, and to control.” George R . Terry “Management is a distinct process consisting of activities of planning, organizing, activating and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources.” James L. Ludury “Management is the art of knowing exactly what you want your men to do and their seeing that they do it in the best and cheapest way .” F.W . Taylor “Management is the art of co-ordination of all resources through the process of planning, organizing, directing and controlling in order to obtain stated objectives. Marrie and Douglas “Management is the process by which a co-operative group directs actions of others towards common goals.” DEFINITIONS

4. Concepts of Management Two schools of thought defining the concept of Management Traditional concept of management Modern Concept of management Emphasized on the direction and supervision of workers while they are undertaking their work. Workers were treated as a factor of production and were required to perform the assigned work. According to Henry Fayol , Modern Concept of management is to forecast and plan, to organize, to command, to coordinate, to control. Emphasised on the Process ,Efficient and Effective Performance , achievement of Organisational Goals .

5. Management as an Economic Resource Management as a Discipline Management as a Process Management as Art of Getting things Management as a team Management as a Human Process Management as an Activity Management as a Creative Process Some other concepts of Management

6. (A) Management as an Economic Resource. Management is one of the productive factors like land, labour , capital, entrepreneur. Other factors of production cannot produce any results of their own unless they are co-ordinated by management. Therefore, management is an important factor of production. (B) Management as a Discipline. Management as a discipline refers to a body of knowledge, a field of study, a practice. It comprises management theory and practice which helps in tracing various managerial problems. It has become an important subject which is taught in universities and business schools and offers a bright career to the students. (C) Management as a Process. Management as a process involves inter-related activities or functions. The functions involve different activities which management is required to perform for properly remaining in the business. These functions are : Defining the objectives of the organisation . Formulating plans, policies, procedures to achieve the objectives efficiently and economically. Acquiring and using various resources of production such as men, materials, machinery and other factors. Identifying various duties and activities and assigning them to different persons and fixing their authority and responsibility. Motivating and guiding people to perform their duties as per plans. Exercising control over the performance of people and taking remedial steps, if necessary. CONCEPTS OF MANAGEMENT  

7. (D) Management as Art of Getting Things. Mary Parker Follett described management as the art of getting things done. A manager is supposed to direct the activities of others. This concept states that : ( i ) It is the art of getting things done through others. ( ii ) The work is to be got done with the co-operation of others. ( iii ) It also involves motivating the subordinates for achieving objectives. ( iv ) Human and technical skills play an important role for getting things done . (E) Management as a Team. As a team or a group of persons, management consists of all those individuals who direct the activities of other individuals to achieve organizational goals. Though managers occupy positions at different levels of the organization but basically they perform the same functions. The managers at top-level management have more authority than those at middle-level and these managers carry more authority and power as compared to those at operational level (lower level). The management group may consist of professional managers, family managers (owning and running a business), civil servant managers (managing public sector undertakings). The managers perform important managerial functions and carry lot of authority and power .

8. (F) Management as a Human Process. Management deals with human beings in the organization, so a number of activities will be required to be performed for getting better results. These activities include : ( i ) The goals are achieved through and with other people. ( ii ) The co-operation of everyone in the organization is necessary. ( iii ) Decisions have to be taken at every level of management. ( iv ) Delegation of adequate authority and fixing of responsibility is essential. ( v ) Motivation plays an important role in achieving organizational objectives. ( vi ) All managerial functions are important for getting the things done through others .

9. (G) Management as an Activity. Management is an activity like any other activity such as playing, studying, teaching, etc. Managers generally perform the following activities. ( i ) Interpersonal activities. A manager has to interact with his subordinates as well as superiors. Interpersonal activities consist of attending social functions, motivating subordinates, maintaining contacts with clients and such other activities. ( ii ) Decisional activities. A manager has to take several types of decisions such as allocation of resources, initiating new products, bargaining with outsiders, etc. ( iii ) Informative activity. In order to run the unit efficiently a manager has to communicate regularly with inside and outside of the organization. He receives and gives information about the tasks, situations and persons . (H) Management as a Creative Process. Management is required to deploy resources judiciously for the achievement of organizational goals. It is a creative process where efforts are made to anticipate new opportunities, new methods of production, new marketing ideas and so on. The creative ideas are put into action and required resources are provided for the implementation. The ideas should be transformed into viable realities and utilities.

10. CHARACTERISTICS OR FEATURES OF MANAGEMENT  

11. NATURE OF MANAGEMENT IS MANAGEMENT AN ART OR SCIENCE  ?

12. Management as an Art …. Existence of Theoretical Knowledge Personalised Application Based on Continuous Practice Creativity

13. Management as a Science… Systematised Body of Knowledge Continuous Observations Principles based on Repeated Experiments Universal Validity Replication is Possible

14. MANAGEMENT—AS A PROFESSION 

15. OBJECTIVES OF MANAGEMENT Social Objectives Personal / Individual Objectives Competitive Salaries Opportunities for Development Personal Recognition Better Working Conditions Organizational Objectives Survival Growth Profitability Innovation Marketing Improvement Supply of Quality Goods Generation of Economic Wealth Creating Employment Opportunities Environment Friendly Methods of Production Creating Civic Amenities Financial Support to Community

16. IMPORTANCE OF MANAGEMENT 

17. ADMINISTRATION V/S MANAGEMENT 

18. Basis of difference Administration Management Nature of work It is primarily concerned with the determination of objectives and broad policies. It is a thinking function . It is doing function . It involves the implementation of plans and policies. Scope It takes major decisions and is a wider term than management. It takes the decision within the framework of administration. Level of Authority It is a top management function . It is a lower level management function. Status It consists of the owners of an enterprise. It consists of managerial personnel with specialised knowledge who may be the employees. Main Functions Planning and control are the main functions at this level. Directing and organising are the main functions at this level. Skill Required Conceptual and human skills required. Technical and human skills are required. Nature of Organisation Generally, it is used in relation to government, military, educational and religious organisations . It is used mainly in business firms which have economic motives. Influence Its decisions are generally influenced by external factors such as social, political, legal, etc. Its decisions are influenced by internal factors such as values, beliefs and opinions. Efforts Deals with planning and policies Execution of policies Direction Not concerned with direction of human efforts Human efforts are directed at management level Control It controls the functioning of the organisation Implementation of policies is done at this level

19. LEVELS OF MANAGEMENT 

20. SCOPE OF MANAGEMENT